Tribunal sets fair rent for social housing property at £196 per week

OUTCOME: Dismissed

FR27 First-tier Tribunal – Property Chamber File Ref No. HAV/00HB/F77/2024/0601

Notice of the Tribunal Decision

Rent Act 1977 Schedule 11

Address of Premises The Tribunal members were 1 [ADDRESS] [POSTCODE]

[NAME] Mr [APPELLANT]

[NAME]

Tenant Mr [APPELLANT] & Mr [APPELLANT]

1. The fair rent is £196.00 Per week (excluding water rates and council tax but including any amounts in paras 3&4)

2. The effective date is 2 January 2025

3. The amount for services is n/a Per n/a

not applicable

4. The amount for fuel charges (excluding heating and lighting of common parts) not counting for rent allowance is

n/a Per n/a

not applicable

5. The rent is not to be registered as variable.

6. The capping provisions of the Rent Acts (Maximum Fair Rent) Order 1999 apply (please see calculation overleaf).

7. Details (other than rent) where different from Rent Register entry

8. For information only:

(a) The fair rent to be registered is the maximum fair rent as prescribed by the Rent Acts (Maximum Fair Rent) Order 1999. The rent that would otherwise have been registered was £276.92 per week.

[NAME] of decision 2 January 2025

FR27 MAXIMUM FAIR RENT CALCULATION

LATEST RPI FIGURE X 390.90

PREVIOUS RPI FIGURE Y 317.70

X 390.90 Minus Y 317.70 = (A) 73.20

(A) 73.20 Divided by Y 317.70 = (B) 0.2304

First application for re-registration since 1 February 1999£ No

If yes (B) plus 1.075 = (C) n/a

If no (B) plus 1.05 = (C) 1.2804

Last registered rent* £153.00 per week Multiplied by (C) = £195.90 per week *(exclusive of any variable service charge)

Rounded up to nearest 50p = £196.00 per week

Variable service charge? NO If YES add amount for services n/a

MAXIMUM FAIR RENT = £196.00 Per Week

Explanatory Note

1. The calculation of the maximum fair rent, in accordance with the formula contained in the Order, is set out above.

2. In summary, the formula provides for the maximum fair rent to be calculated by:

(a) increasing the previous registered rent by the percentage change in the retail price index (the RPI) since the date of that earlier registration and

(b) adding a further 7.5% (if the present application was the first since 1 February 1999) or 5% (if it is a second or subsequent application since that date).

A 7.5% increase is represented, in the calculation set out above, by the addition of 1.075 to (B) and an increase of 5% is represented by the addition of 1.05 to (B).

The result is rounded up to the nearest 50 pence.

3. For the purposes of the calculation the latest RPI figure (x) is that published in the calendar month immediately before the month in which the Tribunal’s fair rent determination was made.

4. The process differs where the tenancy agreement contains a variable service charge and the rent is to be registered as variable under section 71(4) of the Rent Act 1977. In such a case the variable service charge is removed before applying the formula. When the amount determined by the application of the formula is ascertained the service charge is then added to that sum in order to produce the maximum fair rent.

© CROWN COPYRIGHT 2025

FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : HAV/00HB/F77/2024/0601 Property : 1 [ADDRESS] [POSTCODE] Tenant : Mr [COUNSEL] and [COUNSEL] :

None

Landlord : [NAME] : None Type of Application :

Section 70 Rent Act 1977 (“the Act”) Determination by the First-Tier Tribunal of the fair rent of a property following an objection to the rent registered by the Rent Officer.

Tribunal Members : Mr [NAME] R [NAME] Mr [NAME] J [NAME] of Objection : 11th September 2024 Date of Decision and Summary Reasons :

2nd January 2025

DECISION

The Tribunal determines a rent of £196 per week with effect from 2nd January 2025. The Landlord, a [NAME], is not obliged to charge the whole of this rent.

HAV/00HB/F77/2024/0601

2

SUMMARY REASONS

Background 1. On 18th July 2024 the Landlord applied to the Rent Officer for the registration of a new rent of £120.46 per week for the property in accordance with Section 70 of the Rent Act 1977.

2. The rent was previously registered at £153 per week on 15th December 2021 following a determination by the Rent Officer.

3. On 29th August 2024 the Rent Officer registered a new rent of £182.06 per week for the property to take effect from the 29th August 2024.

4. On 11th September 2024 the Tenants objected to this new rent and the matter was referred to the First-tier Tribunal Property Chamber (Residential Property), formerly a Rent Assessment Committee.

5. Directions were first issued on 4th October 2024 and were re-issued on 15th November 2024. Inspection 6. The Tribunal did not inspect the property but considered this case based on the papers provided by the parties and information freely available on the internet. Evidence

7. Other than the letter from the Tenants objecting to the new rent there were no written submissions from either party. Determination and Valuation 8. Having consideration to the comparable evidence and its own expert, general knowledge of rental values in the area the Tribunal considers that the open market rent for the property in good tenable condition would be £1,350 per calendar month. Open market rents are normally expressed as a monthly figure.

9. Such a tenancy would normally include white goods, carpets and curtains/blinds to all be provided by the Landlord and the Landlord would also be responsible for internal repair and decoration.

10. In this case the property is not let in such condition or with white goods, carpets and curtains all supplied so some adjustments to the ‘open market rent’ are necessary. In particular the Tribunal has made the adjustments for the Tenants responsibility for internal decoration and the Tenants provision of carpets, curtains and white goods.

HAV/00HB/F77/2024/0601

3 11. The Tribunal noted the numbers of properties with similar accommodation within a reasonable distance of the property that are available to rent and decided that no deduction for scarcity should be made. 12. The full valuation is shown below: Full open market rent in good condition £1,350 Less deductions for:- Tenants’ liability for internal decoration

£60 Tenant’s provision of white goods

£30 Tenant’s provision of carpets and curtains

£60

____

Total deduction per month

£150 TOTAL OPEN MARKET RENT

£1,200

13. Having made the adjustments indicated above the Fair Rent determined by the Tribunal for the purpose of section 70 of the Rent Act 1977 was £1,200 per calendar month which equates to £276.92 per week.

14. The Section 70 Fair Rent determined by the Tribunal is above the maximum fair rent of £196 per week permitted by the Rent Acts (Maximum Fair Rent) Order 1999.

Accordingly, the lower amount of £196 per week is to be registered as the Fair rent with effect from 2nd January 2025, this being the date of the Tribunal’s decision.

15. It should be noted that the Landlord is a [NAME] and is not obliged or required to charge the full amount of this rent.

APPEAL PROVISIONS

These summary reasons are provided to give the parties an indication as to how the Tribunal made its decision. If either party wishes to appeal this decision, they should first make a request for full reasons and the details of how to appeal will be set out in the full reasons. Any request for full reasons should be made within a month. Any subsequent application for permission to appeal should be made on Form RP PTA.